Editor’s Note
The Kagem emerald mine, a major global source of small emeralds, has resumed operations after a year-long pandemic closure. Its return coincides with rising prices for these gems, with initial sales to be conducted via virtual auctions.
The Gemfields group has announced the reopening of the Kagem emerald mine, one of the largest in the world. Closed for a year due to the pandemic, operations are resuming at a time when the price of small green stones is starting to rise.
Emeralds from the Kagem mine are expected to return to the trading market this week. For now, they will be sold via virtual auctions due to the pandemic, but according to an announcement from Gemfields, which owns 75% of the Zambian deposit, some lots could once again be viewable in person in Bangkok, Dubai, Jaipur, Singapore, and Tel Aviv.
Kagem is one of the largest emerald mines in the world. It covers an area of 41 km² and, according to figures provided by the group, supplies 25% of global production. It owes its reputation particularly to its small stones of a deep green color. This quality can reach prices higher than those of diamonds and rubies, unlike larger stones extracted notably in Colombia, the world’s leading producer.
Activity at this Zambian mine halted with the decline in air traffic and travel. As traders could no longer travel, purchases, which until then had primarily been conducted through in-person auctions, plummeted. This led to the closure of several production sites, including Kagem, which has lain fallow for exactly one year.
The freeze on mining activity has had an undeniable impact on the market, explains Emmanuel Piat, a gemstone dealer. But the impact was limited thanks to existing stocks: between the time a stone comes out of the ground and when it is presented to a customer, it can take between 6 months and 1 year.
Indeed, with the decrease in stocks, a shortage is beginning to be felt for the most sought-after stones destined for high jewelry. As a result, the price of emeralds is climbing. This price is not set by a global benchmark, and in colored stones as elsewhere, explains Emmanuel Piat, the rise is a classic occurrence as soon as the product becomes scarce.
